The auction, which will be done on the HCM Stock Exchange at a starting price of VNĐ10,200 a share, is expected to be among the most wanted IPOs this year. — Photo vietstock.vn

HÀ NỘI (VNS) — Tín Nghĩa Corporation, the second largest State-owned corporation in southern Đồng Nai Province, plans to sell 14.9 million shares or 9.56 per cent of its stake at its initial public offering on April 1.

The auction, which will be done on the HCM Stock Exchange at a starting price of VNĐ10,200 a share, is expected to be among the most wanted IPOs this year.

Established in 1989, Tín Nghĩa Corporation is currently among the 100 biggest firms in Việt Nam with an annual revenue of more than VNĐ10 trillion (US$454.5 million).

If successful, the corporation will earn VNĐ158 billion after the IPO.

Under the equitisation plan, the corporation will have charter capital of nearly VNĐ1.56 trillion. 

With eight subsidiaries, five divisions and 11 affiliates, the company has been operating in the areas of industrial park management, agricultural products, logistics, petrol and oil, gas, real estate, tourism, resorts and building materials.

After the IPO, the corporation will sell 54.53 million shares or 35 per cent of its stake to strategic investors, while the dominant stake of 50 per cent will remain with the State.

Tín Nghĩa owns over 3,500ha of land in the province, including areas for eight industrial parks (IPs), urban areas, tourism sites, petroleum depots, petrol stations and a 20ha clay quarry.

According to its report, the corporation has not earned good revenues from the land fund. Instead, coffee production was the key area bringing in turnover. Coffee exports accounted for about 50 per cent of total sales, followed by revenues from animal feed imports.

In 2015, the corporation estimated a net revenue of VNĐ10 trillion and a net profit of VNĐ304 billion. By 2020, Tín Nghĩa will increase revenues to VNĐ17.5 trillion and profits after tax to VNĐ339 billion.

After the IPO, Tín Nghĩa will continue to develop the four key areas of IP development, petroleum trading, import-export and logistics. In addition, the corporation also plans to spend VNĐ3.4 trillion and VNĐ1.77 trillion on expanding An Phước IP and Ong Keo IP, respectively, and VNĐ930 billion on a petroleum storage project in Phú Hữu Commune. It would also invest VNĐ92 trillion in a 40ha port in Nhơn Trạch District.

The corporation has grown 700ha of coffee in Laos, which will be expanded to 3,000ha in the future. It also plans to build a coffee processing plant in the neighbouring country in the future.

In June 2015, it opened its representative office in Bentonville of Arkansas, USA to buy local commodities, such as soybeans, corn, cotton and timber for processing in Việt Nam. — VNS